India’s benchmark indices fell on Wednesday, weighed down by selling pressure and foreign outflows. The BSE Sensex dropped 318 points to close at 81,501.36, while the Nifty declined by 86 points, ending at 24,971.30.
Among the top gainers in the Nifty 50 were HDFC Life Insurance, Dr. Reddy’s Laboratories, HDFC Bank, Bharti Airtel, and Grasim Industries. Major laggards included Trent, Mahindra & Mahindra, Infosys, Hero MotoCorp, and Adani Ports.
Varun Aggrawal of Ideaprofit attributed the foreign institutional investors’ (FII) outflows to global fund managers reallocating to China after Beijing’s announcement of a significant stimulus package to revive its struggling economy. “In September, China’s central bank adopted aggressive monetary support measures reminiscent of pandemic-era policies,” said Aggrawal.
In the banking sector, open interest (OI) rose by 0.52%, accompanied by a 0.12% increase in price, signaling a buildup of long positions. This is the first time long positions have accumulated since the last expiry. The sector has also formed a higher high and higher low pattern over the past two days, suggesting a potential uptrend.
On the commodities front, geopolitical tensions in the Middle East have driven up demand for gold, with prices approaching USD 2,685 (approximately Rs 76,500), as investors sought safe-haven assets.
“After a steep upward move, the market entered overbought territory, prompting smart money to engage in profit booking and fresh investments,” said VLA Ambala, Co-founder of Stock Market Today. “The Nifty and Sensex have corrected nearly 5% and may continue this trend.”
Ambala advised investors to monitor geopolitical developments, trade policy, and economic data closely, as long-term opportunities in high-quality stocks may soon emerge. “In the next session, Nifty may find support near 24,810 and 24,670, with resistance levels around 25,080 and 25,195,” she added.
(With ANI input)